BILL NUMBER: SB 1906	CHAPTERED  09/27/00

	CHAPTER   731
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 25, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 30, 2000
	AMENDED IN ASSEMBLY   AUGUST 29, 2000
	AMENDED IN ASSEMBLY   AUGUST 24, 2000
	AMENDED IN ASSEMBLY   AUGUST 18, 2000
	AMENDED IN SENATE   APRIL 24, 2000

INTRODUCED BY   Senator Sher

                        FEBRUARY 24, 2000

   An act to amend Sections 14504, 14529.7, 14541, 14551.5, 14552,
14553, 14561, 14571.8, 14581, 14591, 14591.1, 14591.2, and 14591.4
of, to amend and renumber Section 14595 of, to amend and repeal
Section 14549.1 of, to add Sections 14514, 14515.1, 14539.5, 14541.5,
and 14591.6 to, to add Chapter 8.5 (commencing with Section 14595)
to Division 12.1 of, and to repeal Sections 14571.9 and 14592 of, the
Public Resources Code, relating to beverage container recycling, and
making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1906, Sher.  Beverage containers:  enforcement.
   (1) The existing California Beverage Container Recycling and
Litter Reduction Act requires a distributor of specified beverage
containers to pay a redemption payment to the Department of
Conservation, for each beverage container, as defined, sold or
transferred, for deposit in the California Beverage Container
Recycling Fund and provides for an increase in that payment, as
specified.  The money in the fund is continuously appropriated to the
department to pay refund values, processing payments, and for other
purposes.  "Beverage" is defined, for purposes of the act, to
include, among other things, carbonated and noncarbonated water,
noncarbonated soft drinks and sport drinks, specified noncarbonated
fruit drinks, coffee and tea drinks, and carbonated fruit drinks, if
those products are sold in plastic, glass, bimetal, or aluminum
containers in liquid, ready-to-drink form and intended for human
consumption.  Milk, medical food, and infant formula are excluded
from that definition of beverage.  The act requires beverage
manufacturers to indicate a specified message on every beverage
container sold or offered for sale by that beverage manufacturer.  A
violation of the act is a crime and the penalties for violations of
the act are deposited in the fund.
   This bill would additionally include, in that definition of
beverage, vegetable juice in beverage containers of 16 ounces or
less, thereby making an appropriation.  The bill would also define
the terms "infant formula," "noncarbonated soft drink," and "medical
food" for purposes of that definition of beverage.
   The bill would exempt any beverage container included within the
coverage of the act on January 1, 2001, from specified labeling
requirements, until January 1, 2002.
   (2) Existing law excludes from the act any program involving the
collection and payment of deposits for beverage containers sold,
used, or consumed at national parks and monuments, military
installations, or any other property owned by and under the
jurisdiction of the United States.
   This bill would provide that the act applies to a national park or
monument, military installation, or any other property owned by, and
under the jurisdiction of, the United States, to the extent
permitted by federal law, with regard to a beverage container not
otherwise subject to a program involving the collection and payment
of deposits for beverage containers.  The bill would define the term
"a program involving the collection and payment of deposits" for this
purpose.  The bill would state that these changes do not constitute
a change in, but are declaratory of, existing law.
   (3) The existing act authorizes the department to pay a quality
glass incentive payment to curbside recycling programs.
   This bill would specify that payment is to be made to operators of
curbside recycling programs.  The bill would repeal that authority
on January 1, 2003.
   (4) The existing act requires the department to register the
operators of curbside programs.  The act also authorizes the
department to take disciplinary action against, among others, any
certificate holder.
   This bill would provide that a registered operator of a curbside
program is deemed a certificate holder for purposes of the act.
   (4.5) Existing law authorizes the department to conduct an audit
or investigation during the 2-year period before the onset of the
audit or investigation.
   This bill would, after January 1, 2002, increase the amount of
time for which the department may conduct an audit to a 3-year
period.
   (5) The existing act requires the department to provide a report
to the Legislature on or before January 1, 2002, on the impact of a
statewide public education and information campaign and to make
recommendations for any future campaigns.
   This bill would require that the report and recommendations be
made on or before July 1, 2002.
   (6) Existing law requires the processor to pay a dropoff or
collection program, or other specified program, the refund value,
certain administrative costs, and the processing payment for each
empty beverage container received by the processor.  Existing law
requires the department to certify recycling centers and processors
for purposes of the act, and authorizes the department to issue a
certificate as a probationary certificate that is limited to a period
of one year.
   This bill would require the department to certify dropoff and
collection programs, and would require the Director of Conservation
to adopt, by regulation, requirements and standards for
certification.  The bill would prohibit a certified dropoff or
collection program from receiving refund values or processing
payments on an empty beverage container that was received from a
noncertified recycler or on other specified beverage containers not
subject to the act.
   The bill would revise the provisions for the issuance of a
probationary certificate, including authorizing the issuance of a
probationary certificate for up to 2 years.
   (7) Existing law imposes criminal and civil penalties for
specified violations of the act, including submission of false or
fraudulent claims for payment.  Existing law authorizes the
department to take disciplinary action against any certificate
holder, officer, director, or managing employee.
   The bill would specify procedures for the assessment of civil
penalties, and would require the department to take into account
specified factors when assessing these penalties.  The bill would
additionally authorize the department to take disciplinary action
against any party responsible for, directing, contributing to,
participating in, or otherwise influencing the operations of a
certified or registered facility or program and would revise the
disciplinary actions the department is authorized to take against
that party.
   This bill would include, as actions subject to criminal penalties,
the redemption of out-of-state containers, as defined.
   The bill would authorize the department to issue a cease and
desist order when a person is engaged in recycling activity that
violates the act, any regulation adopted pursuant to the act, or an
order issued under the act.  The bill would prescribe procedures for
requesting a hearing regarding such an order and would require the
Attorney General, upon request of the department, to petition the
superior court for the issuance of a preliminary or permanent
injunction, if a person fails to comply with the cease and desist
order issued by the department.
   The bill would prohibit any person from paying, claiming, or
receiving any refund value, processing payment, handling fee, or
administrative fee for imported beverage container material,
previously redeemed containers, rejected containers, line breakage,
or other ineligible material.  The bill would also prohibit any
person from redeeming or attempting to redeem those containers or
materials, returning previously redeemed containers to the
marketplace for redemption, or bringing these containers or materials
to the marketplace for redemption, as specified.
   The bill would require any person importing more than a specified
amount of beverage container material into the state to report the
material and provide an opportunity for inspection.
   The bill would prohibit any person from falsifying documents
required pursuant to the act or the regulations adopted by the
department.  The bill would authorize the department to adopt
emergency regulations to implement these prohibitions, and would
provide that these emergency regulations are not to be repealed by
the Office of Administrative Law and are to remain in effect until
revised by the Director of Conservation.
   (8) The bill would require the department, by March 1, 2001, after
consulting with the recycling industry, to submit a report to the
Legislature as to any recommended changes to the act regarding
enforcement.
   (9) Since a violation of the bill's requirements would be a crime,
the bill would impose a state-mandated local program.
   (10)  The bill also would repeal obsolete provisions, and delete
nonconforming cross-references.
  (11)  The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14504 of the Public Resources Code is amended
to read:
   14504.  (a) Except as provided in subdivision (b), "beverage"
means any of the following products if those products are in liquid,
ready-to-drink form, and are intended for human consumption:
   (1) Beer and other malt beverages.
   (2) Wine and distilled spirit coolers.
   (3) Carbonated water, including soda and carbonated mineral water.

   (4) Noncarbonated water, including noncarbonated mineral water.
   (5) Carbonated soft drinks.
   (6) Noncarbonated soft drinks and "sport" drinks.
   (7) Except as provided in paragraph (4) of subdivision (b),
noncarbonated fruit drinks that contain any percentage of fruit
juice.
   (8) Coffee and tea drinks.
   (9) Carbonated fruit drinks.
   (10) Vegetable juice in beverage containers of 16 ounces or less.

   (b) "Beverage" does not include any of the following:
   (1) Any product sold in a container that is not an aluminum
beverage container, a glass container, a plastic beverage container,
or a bimetal container.
   (2) Wine, or wine from which alcohol has been removed, in whole or
in part, whether or not sparkling or carbonated.
   (3) Milk, medical food, or infant formula.
   (4) One hundred percent fruit juice in containers that are 46
ounces or more in volume.
   (c) For purposes of this section, the following definitions shall
apply:
   (1) "Infant formula" means any liquid food described or sold as an
alternative for human milk for the feeding of infants.
   (2) (A) "Medical food" means a food or beverage that is formulated
to be consumed, or administered enterally under the supervision of a
physician, and that is intended for specific dietary management of
diseases or health conditions for which distinctive nutritional
requirements, based on recognized scientific principles, are
established by medical evaluation.
   (B) A "medical food" is a specially formulated and processed
product, for the partial or exclusive feeding of a patient by means
of oral intake or enteral feeding by tube, and is not a naturally
occurring foodstuff used in its natural state.
   (C) "Medical food" includes any product that meets the definition
of "medical food" in the federal Food, Drug, and Cosmetic Act (21
U.S.C. Sec.  360ee (b)(3).
   (3) "Noncarbonated soft drink" means a nonalcoholic, noncarbonated
naturally or artificially flavored water containing sugar or
sweetener or trace amounts of various elements from both natural and
synthetic sources.
  SEC. 2.  Section 14514 is added to the Public Resources Code, to
read:
   14514.  "Managing employee" includes, but is not limited to, any
person who manages the operation of a facility or is authorized by
the certified operator to sign shipping reports.
  SEC. 3.  Section 14515.1 is added to the Public Resources Code, to
read:
   14515.1.  "Out-of-state container" means a used beverage container
or used beverage container component that is not subject to Section
14560, and that is brought into this state.
  SEC. 4.  Section 14529.7 of the Public Resources Code is amended to
read:
   14529.7.  (a) Except as provided in subdivision (b), this division
does not apply to any program involving the collection and payment
of deposits for beverage containers sold, used, or consumed at
national parks and monuments, military installations, or any other
property owned by and under the jurisdiction of the United States.
   (b) To the extent permitted by federal law, this division,
including, but not limited to, Section 14560.5, shall apply to a
national park or monument, military installation, or any other
property owned by, and under the jurisdiction of, the United States,
with regard to a beverage container not otherwise subject to a
program involving the collection and payment of deposits for beverage
containers.
   (c) For purposes of this section, "a program involving the
collection and payment of deposits" means a program, other than one
imposed pursuant to this division, at a national park or monument,
military installation, or any other property owned by, and under the
jurisdiction of, the United States, that imposes a deposit on a
beverage container at the time of sale and provides an opportunity
for the beverage container purchaser to redeem the deposit at the
national park or monument, military installation, or other property
owned by, and under the jurisdiction of, the United States.
  SEC. 5.  Section 14539.5 is added to the Public Resources Code, to
read:
   14539.5.  (a) The department shall certify dropoff and collection
programs pursuant to this section.  The director shall adopt, by
regulation, requirements and standards for certification and a
dropoff or collection program shall meet all the standards and
requirements contained in the regulations for certification.  The
regulations shall require that all information be submitted to the
department under penalty of perjury.  The regulations shall require,
in addition to any other conditions that may be imposed by the
department, that both of the following conditions be met for
certification:
   (1) The dropoff or collection program demonstrates, to the
satisfaction of the department, that the dropoff or collection
program will operate in accordance with this division.
   (2) The dropoff or collection program notifies the department
promptly of any material change in the nature of its operations that
conflicts with the information submitted in the application for
certification.
   (b) A certified dropoff or collection program shall not receive
any refund value or processing payment on an empty beverage container
that the certified dropoff or collection program knew, or should
have known, was received from a noncertified recycler, on any
beverage container that the certified dropoff or collection program
knew or should have known came from out of this state, or any other
beverage container or other product that does not have a refund value
established pursuant to Section 14560.
   (c) The department may recover, in restitution pursuant to
paragraph (5) of subdivision (c) of Section 14591.2, any payment made
from the fund to a dropoff or collection program pursuant to Section
14573.5 that is based on a document that is not prepared or
maintained in compliance with any applicable recordkeeping
requirements required pursuant to this division or the department's
regulations and that does not allow the department to verify the
claims for those payments.
  SEC. 6.  Section 14541 of the Public Resources Code is amended to
read:
   14541.  (a) The department may issue a certificate pursuant to an
initial or renewal application for certification as probationary, and
the department may issue any other certificate as probationary
pursuant to an enforcement action.
   (b) A probationary certificate issued pursuant to this section
shall be issued for a limited period of not more than two years.
Before the end of the probationary period, the department shall issue
a nonprobationary certificate, extend the probationary period for
not more than one year, or, after notice to the probationary
certificate holder, revoke the probationary certificate.  Subsequent
to the revocation, the former probationary certificate holder may
request a hearing, which, notwithstanding, Section 11445.20 of the
Government Code, shall be conducted in the same form as a hearing for
an applicant whose original application for certification is denied.

   (c) If conditions are imposed on the certificate holder as part of
a disciplinary proceeding conducted pursuant to Section 14591.2, the
certificate shall be considered probationary.  If, at any time, the
certificate holder violates any term or condition of the probationary
certificate, the certificate may be revoked or suspended, after
three days' notice, without any further hearing by the department.
  SEC. 7.  Section 14541.5 is added to the Public Resources Code, to
read:
   14541.5.  Any certification or registration granted by the
department is a privilege and not a vested right or interest.
  SEC. 8.  Section 14549.1 of the Public Resources Code is amended to
read:
   14549.1.  (a) In order to improve the quality and marketability of
glass containers collected for recycling by curbside recycling
programs, the department may, consistent with Section 14581 and
subject to the availability of funds, pay a quality glass incentive
payment to operators of curbside recycling programs.  The total
amount shall not exceed three million dollars ($3,000,000) per
calendar year.  The department shall make a quality glass incentive
payment based on all of the following:
   (1) The amount of the quality glass incentive payment shall be up
to twenty-five dollars ($25) per ton, as determined by the
department.
   (2) The department shall make a quality glass incentive payment
only for color-sorted glass beverage containers that are
substantially free of contamination.
   (3) The department shall make a quality glass incentive payment
only for glass beverage containers that are either collected color
sorted by curbside recycling programs, or collected commingled by
curbside recycling programs and subsequently color sorted by the
collector or the operator of a materials recovery facility.
   (4) Only one payment shall be made for each color-sorted glass
beverage container collected.
   (b) This section shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2003, deletes or extends that
date.
  SEC. 9.  Section 14551.5 of the Public Resources Code is amended to
read:
   14551.5.  (a) The department shall register the operators of
curbside programs pursuant to this section.
   (b) Each curbside program that receives refund values and
administrative fees from certified processors, or that receives
refund values from certified recycling centers, shall register with
the department for an identification number.  No curbside program may
receive refund values or administrative fees without a valid
identification number.
   (c) The director shall adopt, by regulation, a procedure for the
registration of curbside programs.  This procedure shall include
standards and requirements for registration.  These regulations shall
require that all information be submitted to the department under
penalty of perjury.  A curbside program shall meet all of the
standards and requirements contained in the regulations for
registration.
   (d) The department shall require that the identification numbers
received pursuant to this section be used on shipping reports for
material collected by curbside programs pursuant to Sections 14538
and 14539 and on all other reports or documentation required by the
department to administer this division.
   (e) An operator of a curbside program registered pursuant to this
section shall be deemed a certificate holder for purposes of this
division.
  SEC. 10.  Section 14552 of the Public Resources Code is amended to
read:
   14552.  (a) The department shall establish and implement an
auditing system to ensure that the information collected, and refund
values and redemption payments paid pursuant to this division, comply
with the purposes of this division.  Notwithstanding Sections 14573
and 14573.5, the auditing system adopted by the department may
include prepayment or postpayment controls.
   (b) (1) The department may audit or investigate any action taken
during the following periods and may determine if there was
compliance with this division and the regulations adopted pursuant to
this division, during any, or all, of that period:
   (A) On and before December 31, 2001, the department may audit or
investigate any action taken up to two years before the onset of the
audit or investigations.
   (B) On and after January 1, 2002, the department may audit or
investigate any action taken up to three years before the onset of
the audit or investigation.
   (2) Notwithstanding any other provision of law establishing a
shorter statute of limitation, the department may take an enforcement
action, including, but not limited to, an action for restitution or
to impose penalties, at any time within two years after the
department discovers, or with reasonable diligence, should have
discovered, a violation of this division or the regulations adopted
pursuant to this division.
   (c) During the conduct of any inspection, including, but not
limited to, an inspection conducted as part of an audit or
investigation, the entity that is the subject of the inspection
shall, during its normal business hours, provide the department with
immediate access to its facilities, operations, and any relevant
record, that, in the department's judgment, the department determines
are necessary to carry out this section to verify compliance with
this division and the regulations adopted pursuant to this division.

   (1) The department may take disciplinary action pursuant to
Section 14591.2 against any person who fails to provide the
department with access pursuant to this subdivision including, but
not limited to, imposing penalties and the immediate suspension or
termination of any certificate or registration held by the operator.

   (2) The department shall protect any information obtained pursuant
to this section in accordance with Section 14554, except that this
section does not prohibit the department from releasing any
information that the department determines to be necessary in the
course of an enforcement action.
   (d) The auditing system adopted by the department shall allow for
reasonable shrinkage in material due to moisture, dirt, and foreign
material.  The department, after an audit by a qualified auditing
firm and a hearing, shall adopt a standard to be used to account for
shrinkage and shall incorporate this standard in the audit process.
   (e) If the department prevails against any entity in any civil or
administrative action brought pursuant to this division, and money is
owed to the department as a result of the action, the department may
offset the amount against amounts claimed by the entity to be due to
it from the department.  The department may take this offset by
withholding payments from the entity or by authorizing all processors
to withhold payment to a certified recycling center.
   (f) If the department determines, pursuant to an audit or
investigation, that a distributor or beverage manufacturer has
overpaid the redemption payment or processing fee, the department may
do either of the following:
   (1) Offset the overpayment against future payments.
   (2) Refund the payment pursuant to Article 3 (commencing with
Section 13140) of Chapter 2 of Part 3 of Division 3 of Title 2 of the
Government Code.
  SEC. 11.  Section 14553 of the Public Resources Code is amended to
read:
   14553.  (a) All reports, claims, and other information required
pursuant to this division and submitted to the department shall be
complete, legible, and accurate, as determined by the department by
regulation, and shall be signed, by an officer, director, managing
employee, or owner of the certified recycling center, processor,
distributor, beverage manufacturer, container manufacturer, or other
entity.
   (b) The department may inspect the operations, processes, and
records of any entity required to submit a report to the department
pursuant to this division to determine the accuracy of the report and
compliance with the requirements of this division.
   (c) A violation of this section is subject to the penalties
specified in Section 14591.1.
  SEC. 12.  Section 14561 of the Public Resources Code is amended to
read:
   14561.  (a) (1) A beverage manufacturer shall clearly indicate on
every beverage container sold or offered for sale by that beverage
manufacturer in this state the message "CA Redemption Value" or
"California Redemption Value," by either printing or embossing the
beverage container or by securely affixing a clear and prominent
stamp, label, or other device to the beverage container.
   (2) A beverage manufacturer may affix the message "CA Cash Refund,"
"California Cash Refund," or "CA 2.5c," if the container is less
than 24 ounces, or "CA Cash Refund," "California Cash Refund," or "CA
5c," if the container is 24 ounces or more, on a beverage container
sold or offered for sale by the beverage manufacturer, instead of the
message specified in paragraph (1), but the message shall be affixed
in the manner prescribed in paragraph (1).
   (b) Any refillable beverage container sold or offered for sale is
exempt from this section.  However, any beverage manufacturer or
container manufacturer may place upon, or affix to, a refillable
beverage container, any message that the manufacturer determines to
be appropriate relating to the refund value of the beverage
container.
   (c) No person shall offer to sell, or sell to a consumer a
beverage container subject to subdivision (a) that has not been
labeled pursuant to this section, except for a refillable beverage
container that is exempt from labeling pursuant to subdivision (b).
   (d) The department may require that any beverage container
intended for sale in this state be printed, embossed, stamped,
labeled, or otherwise marked with a universal product code or similar
machine-readable indicia.
   (e) Any beverage container labeled with the message specified in
subdivision (a) shall have the minimum redemption payment established
pursuant to Section 14560, which shall be paid by the distributor to
the department pursuant to Section 14574.
   (f) To the extent not otherwise authorized by this section, a
glass beverage container containing noncarbonated fruit drinks that
contain any percentage of fruit juice, made subject to this division
pursuant to Chapter 815 of the Statutes of 1999, may comply with the
requirements of this section by embossing the container with the
message described in paragraph (1) or (2) of subdivision (a).
   (g) Notwithstanding any other requirement of this section, any
beverage container that is included within the scope of this division
on January 1, 2000, but that was not subject to this division before
that date, shall be exempt from the labeling requirements of this
section until January 1, 2001.  However, even though these beverage
containers are not required to bear the message required by this
section from January 1, 2000, to January 1, 2001, inclusive,
notwithstanding subdivision (c) of Section 14512, they shall be
considered "empty beverage containers" for all of the purposes of
this division during that period of time.
   (h) Notwithstanding any other requirement of this section, any
beverage container that is included within the scope of this division
on January 1, 2001, but that was not subject to this division before
that date, shall be exempt from the labeling requirements of this
section until January 1, 2002.  However, even though these beverage
containers are not required to bear the message required by this
section from January 1, 2001, to January 1, 2002, inclusive,
notwithstanding subdivision (c) of Section 14512, they shall be
considered "empty beverage containers" for all of the purposes of
this division during that period of time.
  SEC. 13.  Section 14571.8 of the Public Resources Code is amended
to read:
   14571.8.  (a) No lease entered into by a dealer after January 1,
1987, may contain a leasehold restriction that prohibits or results
in the prohibition of the establishment of a recycling location.
   (b) The director may grant an exemption from the requirements of
Section 14571 for an individual convenience zone only after the
department solicits public testimony on whether or not to provide an
exemption from Section 14571.  The solicitation process shall be
designed by the department to ensure that operators of recycling
centers, dealers, and members of the public in the jurisdiction
affected by the proposed exemption are aware of the proposed
exemption.  After evaluation of the testimony and any field review
conducted, the department shall base a decision to exempt a
convenience zone on one, or any combination, of the following
factors:
   (1) The exemption will not significantly decrease the ability of
consumers to conveniently return beverage containers for the refund
value to a certified recycling center redeeming all material types.
   (2) Except as provided in paragraph (5), the nearest certified
recycling center is within a reasonable distance of the convenience
zone being considered from exemption.
   (3) The convenience zone is in the area of a curbside recycling
program that meets the criteria specified in Section 14509.5.
   (4) The requirements of Section 14571 cannot be met in a
particular convenience zone due to local zoning or the dealer's
leasehold restrictions for leases in effect on January 1, 1987, and
the local zoning or leasehold restrictions are not within the
authority of the department and the dealer.  However, any lease
executed after January 1, 1987, shall meet the requirements specified
in subdivision (a).
   (5) The convenience zone has redeemed less than 60,000 containers
per month for the prior 12 months and, notwithstanding paragraph (2),
a certified recycling center is located within one mile of the
convenience zone that is the subject of the exemption.
   (c) The department shall review each convenience zone in which a
certified recycling center was not located on January 1, 1996, to
determine the eligibility of the convenience zone under the exemption
criteria specified in subdivision (b).
   (d) The total number of exemptions granted by the director under
this section shall not exceed 35 percent of the total number of
convenience zones identified pursuant to this section.
   (e) The department may, on its own motion, or upon petition by any
interested person, revoke a convenience zone exemption if either of
the following occurs:
   (1) The condition or conditions that caused the convenience zone
to be exempt no longer exists, and the department determines that the
criteria for an exemption specified in this section are not
presently applicable to the convenience zone.
   (2) The department determines that the convenience zone exemption
was granted due to an administrative error.
   (f) If an exemption is revoked and a recycling center is not
certified and operational in the convenience zone, the department
shall, within 10 days of the date of the decision to revoke, serve
all dealers in the convenience zone with the notice specified in
subdivision (a) of Section 14571.7.
   (g) An exemption shall not be revoked when a recycling center
becomes certified and operational within an exempt convenience zone
unless either of the events specified in paragraphs (1) and (2) of
subdivision  (e) occurs.
  SEC. 14.  Section 14571.9 of the Public Resources Code is repealed.

  SEC. 15.  Section 14581 of the Public Resources Code is amended to
read:
   14581.  (a) Subject to the availability of funds, and pursuant to
subdivision (c), the department shall expend the money set aside in
the fund, pursuant to subdivision (c) of Section 14580 for the
purposes of this section:
   (1) Twenty-three million five hundred thousand dollars
($23,500,00) shall be expended annually for the payment of handling
fees required pursuant to Section 14585.
   (2) Fifteen million dollars ($15,000,000) shall be expended
annually for payments for curbside programs and neighborhood dropoff
programs pursuant to Section 14549.6.
   (3) (A) Fifteen million dollars ($15,000,000), plus the
proportional share of the cost-of-living adjustment, as provided in
subdivision (b), shall be expended annually in the form of grants for
beverage container litter reduction programs and recycling programs
issued to either of the following:
   (i) Certified community conservation corps, that were in existence
on September 30, 1999, or that are formed subsequent to that date,
that are designated by a city or a city and county to perform litter
abatement, recycling, and related activities, if the city or the city
and county has a population, as determined by the most recent
census, of more than 250,000 persons.
   (ii) Community conservation corps, that are designated by a county
to perform litter abatement, recycling, and related activities, and
are certified by the California Conservation Corps as having operated
for a minimum of two years and as meeting all other criteria of
Section 14507.5.
   (B) Any grants provided pursuant to this paragraph shall not
comprise more than 75 percent of the annual budget of a community
conservation corps.
   (4) (A) Ten million five hundred thousand dollars ($10,500,000)
may be expended annually for payments of five thousand dollars
($5,000) to cities and ten thousand dollars ($10,000) for payments to
counties for beverage container recycling and litter cleanup
activities, or the department may calculate the payments to counties
and cities on a per capita basis, and may pay whichever amount is
greater, for those activities.
   (B) Eligible activities for the use of these funds may include,
but are not necessarily limited to, support for new or existing
curbside recycling programs, neighborhood dropoff recycling programs,
public education promoting beverage container recycling, litter
prevention, and cleanup, cooperative regional efforts among two or
more cities or counties, or both, or other beverage container
recycling programs.
   (C) These funds may not be used for activities unrelated to
beverage container recycling or litter reduction.
   (D) To receive these funds, a city, county, or city and county
shall fill out and return a funding request form to the Department of
Conservation.  The form shall specify the beverage container
recycling or litter reduction activities for which the funds will be
used.
   (E) The Department of Conservation shall annually prepare and
distribute a funding request form to each city, county, or city and
county.  The form shall specify the amount of beverage container
recycling and litter cleanup funds for which the jurisdiction is
eligible.  The form shall not exceed one double-sided page in length,
and may be submitted electronically.  If a city, county, or city and
county does not return the funding request form within 90 days of
receipt of the form from the department, the city, county, or city
and county is not eligible to receive the funds for that funding
cycle.
   (F) For the purposes of this paragraph, per capita population
shall be based on the population of the incorporated area of a city
or city and county and the unincorporated area of a county.  The
department may withhold payment to any
              city, county, or city and county that has prohibited
the siting of a supermarket site, caused a supermarket site to close
its business, or adopted a land use policy that restricts or
prohibits the siting of a supermarket site within its jurisdiction.
   (5) (A) Five hundred thousand dollars ($500,000) may be expended
annually in the form of grants for beverage container recycling and
litter reduction programs.
   (B) Up to a total of six million eight hundred forty thousand
dollars ($6,840,000) shall be paid to the City of San Diego, between
January 1, 2000, and January 1, 2004, for a curbside recycling
program conducted pursuant to Section 14549.7.
   (6) (A) The department shall expend the amount necessary to pay
the processing payment established pursuant to subdivision (b) of
Section 14575.  The department shall establish separate processing
fee accounts in the fund for each beverage container material type
for which a processing payment and processing fee is calculated
pursuant to Section 14575, into which account shall be deposited both
of the following:
   (i) All amounts paid as processing fees for each beverage
container material type pursuant to subdivision (g) of Section 14575.

   (ii) Funds equal to pay 75 percent of the processing payments
established in subdivision (b) of Section 14575, in order to reduce
the processing fee to the level provided in subdivision (f) of
Section 14575.
   (B) Notwithstanding Section 13340 of the Government Code, the
money in each processing fee account is hereby continuously
appropriated to the department for expenditure without regard to
fiscal year, for purposes of making processing payments, and reducing
processing fees, pursuant to Section 14575.
   (7) (A) Up to ten million dollars ($10,000,000) shall be expended
by the department between January 1, 2000, and January 1, 2002, for
the purposes of undertaking a statewide public education and
information campaign aimed at promoting increased recycling of
beverage containers.
   (B) On or before July 1, 2002, the department shall provide a
report to the Legislature on the impact of the statewide public
education and information campaign and make recommendations for any
future campaigns.
   (8) Up to three million dollars ($3,000,000) shall be expended
annually for the payment of quality glass incentive payments pursuant
to Section 14549.1.
   (9) (A) Three hundred thousand dollars ($300,000) shall be
expended annually by the department, until January 1, 2003, pursuant
to a cooperative agreement entered into between the department and
Keep California Beautiful, a nonprofit 501(c)(3) organization
chartered by the State of California in 1990, for the purpose of
conducting statewide public education campaigns aimed at preventing
and cleaning up beverage containers and related litter.  The
campaigns shall include, but not be limited to, coordination of Keep
California Beautiful month.
   (B) Prior to making an expenditure pursuant to this paragraph, the
department shall enter into a cooperative agreement with Keep
California Beautiful.
   (C) As part of the cooperative agreement, Keep California
Beautiful shall provide the department with an annual campaign plan
and budget, and a report of previous year campaign activities.
   (D) On or before July 1, 2002, the department shall make a
recommendation to the Legislature on future funding for beverage
container litter prevention and cleanup activities by Keep California
Beautiful.
   (b) The fifteen million dollars ($15,000,000) that is set aside
pursuant to paragraph (3) of subdivision (a), is a base amount that
the department shall adjust annually to reflect any increases or
decreases in the cost of living, as measured by the Department of
Labor, or a successor agency, of the federal government.
   (c) (1) The department shall review all funds on a quarterly basis
to ensure that there are adequate funds to make the payments
specified in this section and the processing fee reductions required
pursuant to Section 14575.
   (2) If the department determines, pursuant to a review made
pursuant to paragraph (1), that there may be inadequate funds to pay
the payments required by this section and the processing fee
reductions required pursuant to Section 14575, the department shall
immediately notify the appropriate policy and fiscal committees of
the Legislature regarding the inadequacy.
   (3) On or before 180 days after the notice is sent pursuant to
paragraph (2), the department may reduce or eliminate expenditures,
or both, from the funds as necessary, according to the procedure set
forth in subdivision (d).
   (d) If the department determines that there are insufficient funds
to make the payments specified pursuant to this section and Section
14575, the department shall reduce all payments proportionally.
   (e) Prior to making an expenditure pursuant to paragraph (7) of
subdivision (a), the department shall convene an advisory committee
consisting of representatives of the beverage industry, beverage
container manufacturers, environmental organizations, the recycling
industry, nonprofit organizations, and retailers, to advise the
department on the most cost-effective and efficient method of the
expenditure of the funds for that education and information campaign.

  SEC. 16.  Section 14591 of the Public Resources Code is amended to
read:
   14591.  (a) Except as provided in subdivision (b), in addition to
any other applicable civil or criminal penalties, any person
convicted of a violation of this division is guilty of an infraction,
which is punishable by a fine of one hundred dollars ($100) for each
initial separate violation and not more than one thousand dollars
($1,000) for each subsequent separate violation per day.
   (b) (1) Every person who, with intent to defraud, takes any of the
following actions is guilty of fraud:
   (A) Submits a false or fraudulent claim for payment pursuant to
Section 14573 or 14573.5.
   (B) Fails to accurately report the number of beverage containers
sold, as required by subdivision (b) of Section 14550.
   (C) Fails to make payments as required by Section 14574.
   (D) Redeems out-of-state containers, rejected containers, line
breakage, or containers that have already been redeemed.
   (E) Returns redeemed containers to the marketplace for redemption
.
   (F) Brings out-of-state containers, rejected containers, or line
breakage to the marketplace for redemption.
   (G) Submits a false or fraudulent claim for handling fee payments
pursuant to Section 14585.
   (2) If the money obtained or withheld pursuant to paragraph (1)
exceeds four hundred dollars ($400), the fraud is punishable by
imprisonment in the county jail for not more than one year or by a
fine not exceeding ten thousand dollars ($10,000), or by both, or by
imprisonment in the state prison for 16 months, two years, or three
years, or by a fine not exceeding twenty-five thousand dollars
($25,000) or twice the late or unmade payments plus interest,
whichever is greater, or by both fine and imprisonment.  If the money
obtained or withheld pursuant to paragraph (1) equals, or is less
than, four hundred dollars ($400), the fraud is punishable by
imprisonment in the county jail for not more than six months or by a
fine not exceeding one thousand dollars ($1,000), or by both.
   (c)  For purposes of this section and Chapter 8.5 (commencing with
Section 14595), "line breakage" and "rejected container" have the
same meanings as defined in the regulations adopted or amended by the
department pursuant to this division.
  SEC. 17.  Section 14591.1 of the Public Resources Code is amended
to read:
   14591.1.  (a) (1) The department may assess a civil penalty upon a
person who violates this division in an amount greater than one
thousand dollars ($1,000) pursuant to this division and any
regulations adopted pursuant to this division only after notice and
hearing in accordance with Chapter 5 (commencing with Section 11500)
of Part 1 of Division 3 of Title 2 of the Government Code.
   (2) The department may assess a civil penalty upon a person who
violates this division in an amount equal to, or less than, one
thousand dollars ($1,000), using a notice of violation process
established by regulation and may use an informal hearing process
pursuant to Article 10 (commencing with Section 11445.10) of Chapter
4.5 of Part 1 of Division 3 of Title 2 of the Government Code.
   (3) Each violation of this division is a separate violation and
each day of the violation is a separate violation.  The department
shall deposit all revenues from civil penalties in the Penalty
Account specified in subdivision (d) of Section 14580.
   (b) Any person who intentionally or negligently violates this
division may be assessed a civil penalty by the department pursuant
to subdivision (a) of up to five thousand dollars ($5,000) for each
separate violation, or for continuing violations, for each day that
violation occurs.
   (c) Any person who violates this division by an action not subject
to subdivision (b) may be assessed a civil penalty by the department
pursuant to subdivision (a) of up to one thousand dollars ($1,000)
for each separate violation, or for continuing violations, for each
day that violation occurs.
   (d) No person may be liable for a civil penalty imposed under
subdivision (b) and for a civil penalty imposed under subdivision (c)
for the same act or failure to act.
   (e) In determining the amount of penalties to be imposed pursuant
to this division, the department shall take into consideration the
nature, circumstances, extent and gravity of the violation, the costs
associated with bringing the action and, with respect to the
violator, the ability to pay, the degree of culpability, compliance
history, and any other matters that justice may require.
  SEC. 18.  Section 14591.2 of the Public Resources Code is amended
to read:
   14591.2.  (a) The department may take disciplinary action against
any party responsible for directing, contributing to, participating
in, or otherwise influencing the operations of, a certified or
registered facility or program.  A responsible party includes, but is
not limited to, the certificate holder, registrant, officer,
director, or managing employee.  Except as otherwise provided in this
division, the department shall provide a notice and hearing in
accordance with Chapter 5 (commencing with Section 11500) of Part 1
of Division 3 of Title 2 of the Government Code before taking any
disciplinary action against a certificate holder.
   (b) All of the following are grounds for disciplinary action, in
the form determined by the department in accordance with subdivision
(c):
   (1) The responsible party engaged in fraud or deceit to obtain a
certificate or registration.
   (2) The responsible party engaged in dishonesty, incompetence,
negligence, or fraud in performing the functions and duties of a
certificate holder or registrant.
   (3) The responsible party violated this division or any regulation
adopted pursuant to this division, including, but not limited to,
any requirements concerning auditing, reporting, standards of
operation, or being open for business.
   (4) The responsible party is convicted of any crime of moral
turpitude or fraud, any crime involving dishonesty, or any crime
substantially related to the qualifications, functions, or duties of
a certificate holder.
   (c) The department may take disciplinary action pursuant to this
section, by taking any one of, or any combination of, the following:

   (1) Immediate revocation of the certificate or registration, or
revocation of a certificate or registration as of a specific date in
the future.
   (2) Immediate suspension of the certificate or registration for a
specified period of time, or suspension of the certificate or
registration as of a specific date in the future.  Notwithstanding
subdivision (a), the department may impose a suspension of five days
or less through an informal notice, if the action is subject to a
stay on appeal, pending an informal hearing convened in accordance
with Article 10 (commencing with Section 11445.10) of Chapter 4.5 of
Part 1 of Division 3 of Title 2 of the Government Code.
   (3) Imposition on the certificate or registration of any condition
that the department determines would further the goals of this
division.
   (4) Issuance of a probationary certificate or registration with
conditions determined by the department.
   (5) Collection of amounts in restitution of any money improperly
paid to the certificate holder or registrant from the fund.
   (6) Imposition of civil penalties pursuant to Section 14591.1.
   (d) The department may do any of the following in taking
disciplinary action pursuant to this section:
   (1) If a certificate holder or registrant holds certificates or is
registered to operate at more than one site or to operate in more
than one capacity at one location, such as an entity certified as
both a processor and a recycling center, the department may
simultaneously revoke, suspend, or impose conditions upon some, or
all of, the certificates held by the responsible party.
   (2) If the responsible party is an officer, director, partner,
manager, employee, or the owner of a controlling ownership interest
of another certificate holder or registrant, that other operator's
certificate or registration may also be revoked, suspended, or
conditioned by the department in the same proceeding, if the other
certificate holder or registrant is given notice of that proceeding,
or in a subsequent proceeding.
   (3) (A) If, pursuant to notice and a hearing conducted by the
director or the director's designee in accordance with Article 10
(commencing with Section 11445.10) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of the Government Code, the department
determines that the continued operation of a certified or registered
entity poses an immediate and significant threat to the fund, the
department may order the immediate suspension of the certificate
holder or registrant, pending revocation of the certificate or
registration, or the issuance of a probationary certificate imposing
reasonable terms and conditions.  The department shall record the
testimony at the hearing and, upon request, prepare a transcript.
For purposes of this section, an immediate and significant threat to
the fund means any of the following:
   (i) A loss to the fund of at least ten thousand dollars ($10,000)
during the six-month period immediately preceding the order of
suspension.
   (ii) Missing or fraudulent records associated with a claim or
claims totaling at least ten thousand dollars ($10,000) during the
six-month period immediately preceding the order of suspension.
   (iii) A pattern of deceit, fraud, or intentional misconduct in
carrying out the duties and responsibilities of a certificate holder
during the six-month period immediately preceding the order of
suspension.
   (iv) At least three claims submitted for ineligible material in
violation of this division, including, but not limited to, a
violation of Section 14595.5, during the six-month period immediately
preceding the order of suspension.
   (B) An order of suspension or probation may be issued to any or
all certified or registered facilities or programs operated by a
person or entity that the department determines to be culpable or
responsible for the loss or conduct identified pursuant to
subparagraph (A).
   (C) The order of suspension or issuance of a probationary
certificate imposing terms or conditions shall become effective upon
written notice of the order to the certificate holder or registrant.
Within 20 days after notice of the order of suspension, the
department shall file an accusation seeking revocation of any or all
certificates or registrations held by the certificate holder or
registrant.  The certificate holder or registrant may, upon receiving
the notice of the order of suspension or probation, appeal the order
by requesting a hearing in accordance with Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code.  A request for a hearing or appeal from an order of
the department does not stay the action of the department for which
the notice of the order is given.  The department may combine
hearings to appeal an order of suspension and a hearing for the
proposed revocation of a certificate or registration into one
proceeding.
   (D) Nothing in this section shall prohibit the department from
immediately revoking a probationary certificate pursuant to
subdivision (b) of Section 14541 or from taking other disciplinary
action pursuant to Section 14591.2.
  SEC. 19.  Section 14591.4 of the Public Resources Code is amended
to read:
   14591.4.  (a) In addition to any other remedies, penalties, and
disciplinary actions provided by this division or otherwise, the
department may seek restitution of any money illegally paid to any
person from the fund, plus interest at the rate earned on the Pooled
Money Investment Account of the total amount.
   (b) A certificate holder is liable to the department for
restitution pursuant to paragraph (5) of subdivision (c) of Section
14591.2 for payments made by the department to the certificate holder
that are based on improperly prepared or maintained documents, as
specified in paragraph (7) of subdivision (b) of Section 14538 and
paragraph (8) of subdivision (b) of Section 14539.
   (c) If the department has a civil cause of action for restitution
pursuant to subdivision (a) or (b), or if the department has a civil
cause of action against a certificate holder or other responsible
party for restitution under any other circumstance, the department
may seek restitution in accordance with the following:
   (1) For restitution of an amount of more than one thousand dollars
($1,000), the department shall proceed in a hearing in accordance
with Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code.  The hearing may take place at
the same time as a hearing to impose disciplinary action on a
certificate holder.
   (2) For restitution of an amount of one thousand dollars ($1,000)
or less, the department may use an informal hearing in accordance
with Article 10 (commencing with Section 11445.10) of Chapter 4.5 of
Part 1 of Division 3 of Title 2 of the Government Code.
   (d) Notwithstanding subdivisions (b) and (c) of Section 14591.1,
if the department collects amounts in full restitution for money
paid, the department may impose a penalty of not more than one
hundred dollars ($100) for each separate violation, or for continuing
violations, for each day that violation occurs.
  SEC. 20.  Section 14591.6 is added to the Public Resources Code, to
read:
   14591.6.  (a) When a person is engaged in recycling activity that
violates this division, any regulation adopted pursuant to this
division, or an order issued under this division, the department may
issue an order to that person to cease and desist from that
activity.
   (b) If a request for a hearing is filed in writing within 15 days
of the date of service of the order described in subdivision (a), a
hearing shall be held in accordance with Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code.  If no written request for a hearing is filed within 15 days
from the date of service of the order, the order shall be deemed the
final order of the department and is not subject to review by any
court or agency.
   (c) Upon the failure of any person or persons to comply with any
cease and desist order issued by the department, the Attorney
General, upon request of the department, shall petition the superior
court for the issuance of a preliminary or permanent injunction, or
both, as may be appropriate, restraining the person from continuing
the activity in violation of the cease and desist order.
   (d) The court shall issue an order directing defendants to appear
before the court at a certain time and place and show cause why the
injunction should not be issued.  The court may grant the prohibitory
or mandatory relief that may be warranted.
  SEC. 21.  Section 14592 of the Public Resources Code is repealed.

  SEC. 22.  Section 14595 of the Public Resources Code is amended and
renumbered to read:
   14594.5.  The department may assess upon any person, entity, or
operation which redeems, attempts to redeem, or aids in the
redemption of, empty beverage containers that have already been
redeemed, a civil penalty of up to ten thousand dollars ($10,000) per
transaction, or an amount equal to three times the damage or
potential damage, whichever is greater, plus costs as provided in
Section 14591.3, pursuant to notice and hearing in accordance with
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code.
  SEC. 23.  Chapter 8.5 (commencing with Section 14595) is added to
Division 12.1 of the Public Resources Code, to read:

      CHAPTER 8.5.  REPORTING REQUIREMENTS AND PAYMENT PROHIBITIONS
RELATED TO OUT-OF-STATE AND OTHER INELIGIBLE CONTAINERS

   14595.  The Legislature finds and declares that the redemption of
beverage container material imported from out of state, previously
redeemed containers, rejected containers, and line breakage presents
a significant threat to the integrity of the beverage container
recycling program and fund.  It is therefore the intent of the
Legislature that no refund value or other recycling program payments
be paid to any person for this material.  It is further the intent of
the Legislature that any person participating in conduct intended to
defraud the state's beverage container recycling program shall be
held accountable for that conduct.
   14595.4.  For purposes of this chapter, the following definitions
shall apply:
   (a) "Person" means any individual, corporation, operation, or
entity, whether or not certified or registered pursuant to this
division.
   (b) "Refund value" means, in addition to the definition in Section
14524, any payment by a certified recycler for beverage container
material that is at least 15 percent more than the statewide average
scrap value for that material type, as determined by the department
for the month in which the payment was made, unless the department
determines that a reasonable basis exists for that payment.
   14595.5.  (a) (1) No person shall pay, claim, or receive any
refund value, processing payment, handling fee, or administrative fee
for any of the following:
   (A) Beverage container material that the person knew, or should
have known, was imported from out of state.
   (B) A previously redeemed container, rejected container, line
breakage, or other ineligible material.
   (2) No person shall, with intent to defraud, do any of the
following:
   (A) Redeem or attempt to redeem an out-of-state container,
rejected container, line breakage, previously redeemed container, or
other ineligible material.
   (B) Return a previously redeemed container to the marketplace for
redemption.
   (C) Bring an out-of-state container, rejected container, line
breakage, or other ineligible material to the marketplace for
redemption.
   (D) Receive, store, transport, distribute, or otherwise facilitate
or aid in the redemption of a previously redeemed container,
out-of-state container, rejected container, line breakage, or other
ineligible material.
   (b) For purposes of implementing subdivision (a), the department
shall take all reasonable steps to exclude beverage container
material imported from out of state, previously redeemed containers,
rejected containers, and line breakage, when conducting surveys to
determine a commingled rate pursuant to Section 14549.5.
   14596.  (a) Any person importing more than 100 pounds of aluminum,
bimetal, or plastic beverage container material, or more than 1,000
pounds of glass beverage container material, into the state, shall
report the material to the department and provide the department with
an opportunity for inspection, in accordance with the regulations
adopted by the department.
   (b) The department may impose civil penalties pursuant to Section
14591.1 or take disciplinary action pursuant to Section 14591.2 for a
violation of this section.
   14597.  (a) No person shall falsify documents required pursuant to
this division or pursuant to regulations adopted by the department.
The falsification of these documents is evidence of intent to
defraud and, for purposes of subdivision (b) of Section 14591.1,
constitutes intentional misconduct.  The department may also take
disciplinary action pursuant to Section 14591.2 against a person who
engages in falsification including, but not limited to, revocation of
any certificate or registration.
   (b) No person shall submit, or cause to be submitted, a fraudulent
claim pursuant to this division.  For purposes of this subdivision,
a fraudulent claim is a claim based in whole or in part on false
information or falsified documents.  Any person who submits a
fraudulent claim is subject to the assessment of penalties pursuant
to subdivision (b) of Section 14591.1.  The department may take
action for full restitution for a fraudulent claim, pursuant to
Section 14591.4, and may also take disciplinary action pursuant to
Section 14591.2 including, but not limited to, revocation of any
certificate or registration.
   14599.  The department may adopt emergency regulations to
implement this chapter.  Any emergency regulations, if adopted, shall
be adopted in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code, and
for the purposes of that chapter, including Section 11349.6 of the
Government Code, the adoption of these regulations is an emergency
and shall be considered by the Office of Administrative Law as
necessary for the immediate preservation of the public peace, health
and safety, and general welfare.  Notwithstanding Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, any emergency regulations adopted pursuant to
this section shall be filed with, but not repealed by, the Office of
Administrative Law, and shall remain in effect until revised by the
director.
  SEC. 24.  The amendment to Section 14529.7 of the Public Resources
Code by Section 4 of this act does not constitute a change in, but is
declaratory of, existing law.
  SEC. 25.  (a) It is the intent of the Legislature that the
Department of Conservation work with members of the recycling
industry to identify any additional changes to the California
Beverage Container Recycling and Litter Reduction Act that
                                   might be needed regarding
enforcement of the act.
   (b) On or before March 1, 2001, the Department of Conservation
shall, after consulting with the recycling industry, submit a report
to the Legislature as to any recommended changes to the California
Beverage Container Recycling and Litter Reduction Act that are needed
regarding enforcement of the act.
  SEC. 26.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
